CFTC Unveils Plan to Bring Crypto Exchanges Under Federal Oversight

What happened

The CFTC is seeking public comment on a framework that would create a new federal license for crypto exchanges, with leverage offers as the trigger for oversight. Decrypt News Law and Order CFTC Unveils Plan to Bring Crypto Exchanges Under Federal Oversight The CFTC is seeking public comment on a framework that would create a new federal license for crypto exchanges, with leverage offers as the trigger for oversight.

In brief The CFTC published an advance notice outlining Regulation CTX and Regulation CAM, which would let crypto exchanges register as a new type of federally regulated "crypto asset market." Under the agency's preliminary reading, merely offering leverage could bring even fully paid trades under CFTC oversight unless customers take actual delivery of their crypto.

The public has 60 days to comment. The CFTC wants to give crypto exchanges a federal home, and leverage is the key that unlocks the door. The agency is moving forward with further rulemaking proposals following the collapse of the Clarity Act, the legislation that would have established the ground rules for most cryptocurrency activity in the United States but last month fell short.